IGI Logo

Keralam’s Emerging Residential Realty Play…

Veegaland Developers Ltd. (Veegaland), incorporated in 2007, is a Keralam-based real estate developer engaged in the development of residential projects. Operating under the brand ‘Veegaland Homes’. The company caters to mid-premium, premium, ultrapremium, luxe-series, and ultra-luxury segments across Kochi, Thiruvananthapuram, Kozhikode, and Thrissur. As of June 30, 2026, the company had completed 10 residential projects with a saleable area of 11.05 lakh sq. ft., comprising 692 units, while maintaining a portfolio of 12 ongoing and 3 upcoming projects.

• India's residential real estate market, valued at ~Rs20.4 trillion in FY25, is projected to grow at a robust ~16% CAGR through FY32, driven by urbanisation, corporate sector expansion, and rising housing demand.

• The topline grew at a CAGR of ~51% to Rs 251cr in FY26 from FY24, aided by strong project execution, robust sales momentum, and favourable demand in Keralam's residential real estate market.

• EBITDA and Adj. PAT grew at robust CAGRs of ~75% and ~84% over FY24-FY26 to Rs 40cr and Rs 27cr, respectively, supported by strong operating leverage, improved project mix, and cost efficiencies, with EBITDA margin expanding ~410bps to ~16%.

• On August 21, 2025, the company raised funds through a rights issue, fully subscribed by the promoter at a bonus-adjusted price of Rs 200 per share, primarily to repay unsecured promoter loans.

• Pre-sales grew at a CAGR of ~40% from FY24 to Rs 406cr in FY26, driven by strong demand, portfolio expansion, and improved sales velocity.

• Backed by 12 ongoing and 3 upcoming projects, the company's Rs 909cr order book provides strong growth visibility, covering 1,206 units and ~23 lakh sq. ft. of saleable area.

• At the upper price band of Rs 140, Veegaland Developers is valued at ~1.4x FY26 P/BV on a post-issue basis, which is attractive compared to its peers. The company is well-positioned to benefit from strong growth in Keralam's residential real estate market, supported by a scalable project pipeline, robust pre-sales momentum, and healthy revenue visibility. Backed by strong execution capabilities, improving profitability, expanding margins and healthy return ratios, the company offers a compelling long-term growth profile. Accordingly, we assign a "SUBSCRIBE" rating for investors with a medium- to long-term investment horizon.

Purpose of IPO

The offer consists of fresh issue of ?210cr. The net proceeds from the fresh issue will be primarily utilized for the development of projects (Rs 120cr), while the remaining proceeds will be used for general corporate purposes.

Key Risks

• Geographic and Segment Risk: Exclusive reliance on the Keralam’s residential market.

• Execution Risk: Dependence on third-party contractors and consultants for project execution.

For More Geojit Financial Services Ltd Disclaimer https://www.geojit.com/disclaimer
SEBI Registration Number: INH20000034